Why Mattel now has a problem with Barbie

Group 1 - Mattel's stock plummeted 25% after announcing weak holiday-season sales and expectations for another slow year, leading to a loss of nearly $1 billion in market value [1][4] - The company reported net sales of approximately $5.3 billion last year, a decline of 1% from the previous year, and gross billings for Barbie products fell 11% [4][5] - Despite the success of the "Barbie" movie, which generated around $1.5 billion at the box office and over $150 million in related product sales, Mattel has struggled to maintain momentum and replicate that success [4][5] Group 2 - CEO Ynon Kreiz acknowledged uncertainty in 2025, noting that while Hot Wheels and Uno performed well, Barbie and Fisher-Price lines lagged [2] - The company plans to focus more on digital games and toys linked to movie franchises as part of its strategy to become an "IP-driven play and family entertainment business" [3][5] - Efforts to revitalize the Barbie brand, including introducing diverse variants like a diabetes Barbie and an autism Barbie, have not reversed the declining sales trend [5]